1. © 2013 U PSTREAM A CADEMY, LLC 1 W ORLD C LASS T RAINING: G ETTING Y OUR F IRM O N T RACK P RESENTED BY S AM M. A LLRED, F OUNDER & D IRECTOR O F U PSTREAM A CADEMY T HE P ROPER W AY T O A PPROACH S TRATEGIC P LANNING P RESENTED BY S AM A LLRED D IRECTOR OF U PSTREAM A CADEMY

2. © 2013 U PSTREAM A CADEMY, LLC As leaders, we all want to have success in our firms. Too often, though, in periods of rapid change we become more reactive and less proactive about changes and accomplishments. With change happening at an increasing rate, what should we strategically do? 2

3. © 2013 U PSTREAM A CADEMY, LLC While we can’t possibly cover every aspect of strategic planning in this Leadership Training Forum, we will focus on the proper ways to approach strategic planning in an accounting firm. 3

4. © 2013 U PSTREAM A CADEMY, LLC 1.Observations regarding strategic planning in our profession 2.What is strategic planning? 3.Thoughts about how to approach strategic planning 4.ELA participants answer key questions 5.Question and answer session P RESENTATION R OADMAP 4

5. © 2013 U PSTREAM A CADEMY, LLC  O BSERVATIONS R EGARDING S TRATEGIC P LANNING I N O UR P ROFESSION 5

6. © 2013 U PSTREAM A CADEMY, LLC O BSERVATION #1 The word “strategy” is widely used but largely misunderstood. There is little doubt that most leaders think it is important. 6

7. © 2013 U PSTREAM A CADEMY, LLC Some leaders feel creating a strategic plan is just another business fad – we do it because some author or consultant said we should. Then it sits on a shelf or is hung on a wall, and that’s the end of it. Visioneering 7 O BSERVATION #2

8. © 2013 U PSTREAM A CADEMY, LLC Too many employees are disconnected from the firm’s strategic plan. When asked what they can do to contribute to the plan, most employees simply say, “Achieve my charge hour budget.” This concept of how they can contribute does little to help them feel centered in the firm. O BSERVATION #3 8

9. © 2013 U PSTREAM A CADEMY, LLC “Good leaders make people feel that they’re at the very heart of things, not at the periphery. Everyone feels that he or she makes a difference to the success of the organization. When that happens, people feel centered and that gives their work meaning.” Warren G. Bennis 9

10. © 2013 U PSTREAM A CADEMY, LLC One of the main reasons for creating a strategic plan is to foster a higher level of teamwork and synergy within your firm. A clear, compelling plan should be a catalyst to help firm employees work together towards a common objective. O BSERVATION #4 10

11. © 2013 U PSTREAM A CADEMY, LLC The strategic plan time frame is up to each firm. Given this age of retirement and declining employee loyalty, most firms look at a strategic plan that covers three to five years. O BSERVATION #5 11

12. © 2013 U PSTREAM A CADEMY, LLC Sometimes leaders get discouraged talking about strategy when they are facing serious challenges with partner unity, poor performance, profitability, etc. They need to realize that often their best strategy is to focus on overcoming their current challenges first. O BSERVATION #6 12

13. © 2013 U PSTREAM A CADEMY, LLC One of the challenges with strategic planning is the natural but regrettable tendency to focus on new things: new markets, new offices, new services, etc. O BSERVATION #7 13

14. © 2013 U PSTREAM A CADEMY, LLC Too many strategic plans sit on a shelf unchallenged, unread, and unimplemented. At the end of the day, the value of a written strategic plan can be measured by the discipline of firm leaders to execute the plan. O BSERVATION #8 14

15. © 2013 U PSTREAM A CADEMY, LLC  W HAT I S S TRATEGIC P LANNING ? 15

16. © 2013 U PSTREAM A CADEMY, LLC Strategic planning is the search for ways to build a competitive advantage, to develop a set of actions that will make the firm more successful than it has been previously. 16

17. © 2013 U PSTREAM A CADEMY, LLC Strategy is all about trade-offs. It’s based on the premise that all firms have a limited amount of time, energy and resources. Strategic planning is the process to decide how to use existing resources. It is as much about what you won’t do as it is about what you will do. 17

18. © 2013 U PSTREAM A CADEMY, LLC Developing a strategy is usually more of a creative activity than an analytical one. It’s about finding new and better ways of doing things. It’s about proactively striving for improved results. When done right, it creates a sustainable competitive advantage. 18

19. © 2013 U PSTREAM A CADEMY, LLC “The goal of strategy is not to forecast where the market is going, but to create a responsive organization which will adapt wherever it goes.” David H. Maister 19

20. © 2013 U PSTREAM A CADEMY, LLC 20  T HOUGHTS A BOUT H OW T O A PPROACH S TRATEGIC P LANNING

21. © 2013 U PSTREAM A CADEMY, LLC Vision plays a crucial role in the development of strategic plans because it acts as the single point of alignment for all of a firm’s strategic endeavors. In a very real sense, vision must precede strategy when setting strategic goals. 1. T IE S TRATEGY T O V ISION 21

22. © 2013 U PSTREAM A CADEMY, LLC V ISION S TRATEGIC P LAN G OALS I NDIVIDUAL /T EAM T ASKS 22

23. © 2013 U PSTREAM A CADEMY, LLC While firm leaders have the responsibility to establish the firm’s vision, they should never do so in a vacuum. People always feel more committed to a vision if they feel they have played some role in creating that vision. 23

24. © 2013 U PSTREAM A CADEMY, LLC Once you set the firm vision, the next step is to identify the key strategic endeavors that will best move you towards your vision. You should limit the number of strategic endeavors to three or four. 2. L IMIT T HE N UMBER O F E NDEAVORS 24

25. © 2013 U PSTREAM A CADEMY, LLC 25 Develop Future Leaders Strategic Endeavors Partner Goals Establish Profitable Niches Serve Only A Clients Jason Allen – Coach Carol Davis to partner level in three years. Brent Williams – Coach Darren Stevens to partner level in three years. Paul Step – Transfer $300,000 of billings to free up time for Banking Niche. Lori Garretts – Develop plan to take Healthcare Niche to Level 3. Karen Adams – Develop a client screening process to identify A prospects. Glen Case – Develop a process to remove D clients from the firm. 3. T IE P ARTNER G OALS T O E NDEAVORS

26. © 2013 U PSTREAM A CADEMY, LLC Too often, strategic plans are developed entirely at the highest leadership level of a firm, and then everyone in the rank and file is given the plan and asked to follow it. At best, this approach garners support for the plan, but seldom commitment. 26 4. A LLOW T EAMS T O D EVELOP P LANS

27. © 2013 U PSTREAM A CADEMY, LLC “One of the most unfortunate myths about the strategy development process is that it is the responsibility of the firm leadership or a firm-wide committee to develop a strategic plan and then persuade or ‘sell’ the rest of the partnership on following that vision.” David H. Maister 27

28. © 2013 U PSTREAM A CADEMY, LLC 28  ELA P ARTICIPANTS A NSWER K EY Q UESTIONS

29. © 2013 U PSTREAM A CADEMY, LLC 29 We have asked a number of ELA participants to respond to several questions regarding strategic planning in an accounting firm. Please know that response to these questions is not limited to those participants who have been contacted in advance.

30. © 2013 U PSTREAM A CADEMY, LLC 30 Given that it’s difficult to work in groups larger than 10 to 15 people, how can we connect everyone in the firm to the development of a firm vision and still maintain some sense of order? Q UESTION

31. © 2013 U PSTREAM A CADEMY, LLC 31 Why does it make sense to limit the number of strategic endeavors to three or four? What are the risks associated with having ten different strategic endeavors within a firm? Q UESTION

32. © 2013 U PSTREAM A CADEMY, LLC 32 How might we allow offices, departments, and teams to develop their own detailed plans and objectives to contribute to the firm’s overall strategic plan? Q UESTION

33. © 2013 U PSTREAM A CADEMY, LLC 33 What are some things we can do to keep the strategic plan from just sitting on a shelf, largely forgotten? Q UESTION

34. © 2013 U PSTREAM A CADEMY, LLC 34  Q UESTION A ND A NSWER S ESSION

35. © 2013 U PSTREAM A CADEMY, LLC 35 Thank You! sama@upstreamacademy.com